Tyson Foods Owes Arkansas Sales Tax on Rented Delivery Pallets

Three Tyson Foods Inc. subsidiaries aren’t entitled to a $3.45 million refund of sales tax they paid on wooden pallets used to transfer food to customers, the Arkansas Supreme Court ruled Thursday.

“We conclude chicken is just chicken—not chicken plus a pallet,” Justice Nicholas Bronni wrote for the unanimous court. “So we affirm the circuit court’s decision holding that Tyson’s pallet rentals are not tax-exempt sales for resale and rejecting Tyson’s refund claim.”

The Tyson chicken and tortilla divisions asked the justices to order the Arkansas Department of Finance and Administration to refund $3.45 million in sales tax they paid ...